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While the company didn’t specify how many jobs would be cut or stores would be closed, it said the new plan is an attempt to adapt to the changing retail industry while preserving jobs for the “overwhelming majority” of its 10,000 employees.

Still, American Apparel says even if the cost cutting measures succeed, there’s no guarantee that it will have sufficient financing to meet funding requirements.

In another effort to turn sales around, the company plans to launch a new fall merchandise line focused on basic clothing items.

“Historically, the fall season has not been a major focus for the company,” Chief Executive Paula Schneider said. “The new styles are designed to increase revenue as we continue to evolve our product offering during this important selling season.”